Directors and Officers Liability Insurance

If you’re a Director or Senior Manager of a company, Directors and Officers Liability Insurance can protect you from being sued personally for the actions of the company.

What does Directors & Officers Liability Insurance cover?

If a customer or another third party suffered financial loss, as a result of the actions of your company, they may try to sue the company to recover those losses. If however, the company successfully defends the claim, or no longer exists to defend it, it is possible that they could pursue a director (or former director) of that company personally to recover their losses. Directors and Officers (D&O) Liability Insurance would protect you against this type of claim.

Is someone really likely to sue me personally for the actions of my company?

Legal action against company directors does happen as a result of their business activity, and Directors and Officers Liability Insurance has been used to protect them against such action. These claims are rare, because the obvious first port of call is to pursue the company to recover the losses. However, if that proves unsuccessful, the owners, directors or senior managers of the business can be next in line.

Many people mistakenly think that working for a Limited Company gives them complete protection from personal legal action, but the reality is that claims do happen against directors. Although these claims are very rare, there is potential for the claims to be very severe. If a claim against you is successful, all of your assets are potentially at risk – even your home and savings.

Why should I deal with JM Glendinning for Directors & Officers Liability Insurance?

For such a potentially complex product, you want to be dealing with a name you can trust. We have been in business since 1972 to provide local, personal service and help you when you need it most – in the event of a claim. If you need to make a claim under your Directors and Officers Liability Insurance policy, we will help you every step of the way and manage all communications with insurers on your behalf.

More of our Business Insurance products

Solicitors PI Proposal Form

Solicitors PI Proposal Form

Step 1 of 10

10%

Please provide a full answer to every question. The definitions at the end of this form should be read in conjunction with the form. This form must be signed by a Principal/Member/Director of the practice.

1. Name and address

Name*

FirstLast

SRA Registration Number*

Date Established*

Please include all names under which you practice and any other entities for which you are seeking cover, including Trustee and/or Nominee Companies. Please provide a sheet of your headed notepaper.

2. Prior practices

Please list the names of all prior practices of which this practice is a successor practice in the last 10 years. If necessary, list further details on a separate sheet.*

Name of Practice

Date of Establishment

Date of succession

Have any of the listed practices reported any circumstances or claims in the last eight years?*

Yes

No

Please provide details and refer to Question 11.

3. Other mergers and acquisitions

Has your practice merged with or acquired any firm that purchased run-off cover prior to the merger or acquisition where your practice is not a successor practice?*

Yes

No

Please provide details.

4. Alternative Business Structures

Is the practice in the process of or considering becoming an Alternative Business Structure regulated by the SRA within the next 12 months?*

Yes

No

Please provide full details including any application form or documentation.

5. Company Ownership / Directorships

Is the practice or any Principal/Member/Director of the practice, connected financially, or otherwise, with any other practice, company or business for which it renders professional services?*

Yes

No

Please provide details of any joint venture or outside board positions held by anyone listed in question 6 below.

5. Solicitor Details

Please provide all information requested for every Principal, Member, Director, assistant and consultant who will be employed by your practice as at the policy inception. If any person listed is a Registered Foreign Lawyer or a Registered European Lawyer, please note RFL or REL alongside solicitor status. Please enclose Curriculum Vitae for every Principal/Member/Director in your practice who has not held this position in the Firm for at least three years.*

Please provide all information requested for every non-solicitor principal, member or director as at the policy inception.

Former Principals*

Title

Surname

Forename(s)

Date became principal/ director

Date ceased to be principal / director

Equity or Non-Equity (E/NE)

Full/Part time

Date Qualified

Roll No

Please provide all information requested for anyone who has previously been a Principal, Member or Director in the practice since 1st October 2008 or since inception of the practice, whichever is the later. If any person listed is a Registered Foreign Lawyer or a Registered European Lawyer, please note RFL or REL alongside Roll No.

7. Other Staff

Does the practice have other members of staff?*

Yes

No

Number of non-solicitor fee earning staff:*

Full Time

Part Time

Number of all other staff (inc secretarial):*

Full Time

Part Time

8. Practice Fees

The practice's accounting year end is:*

Please provide gross fee income for the last three accounting periods*

Year Ending/

UK

USA/Canada

Elsewhere

Total for the year

Please provide an estimate of gross fee income for the next accounting period:*

Year Ending/

UK

USA/Canada

Elsewhere

Total for the year

Please attach copies of audited accounts for the last two completed years. If not available, please provide copies of signed-off management accounts*

Drop files here or

Accepted file types: pdf, doc, docx, xls, xlsx, csv, txt.

Has any one client or group of clients generated 20% or more of your annual gross fee income in any of the last three years?*

Yes

No

Please provide details

If your practice is represented in the USA/Canada do you have; a local office or representative; anyone holding power of attorney on your behalf; a reciprocal referral agreement; bank accounts in the USA/Canada; or do you act as trustee for any trust which has any USA/Canadian operation?*

Yes

No

Please provide full details (on a separate sheet) of all clients domiciled in the USA/Canada included above and the work undertaken for them and whether the work is under UK or US law.

Please provide full details of any legal advice given in respect of foreign law, jurisdictions or contracts not subject to English Law and what experience your firm has in the different jurisdictions?

In respect of advice given to US clients is this in accordance with UK law only?*

Yes

No

Please provide full details

9. Client details

Please state percentage totalling 100% of gross fees arising from the categories of clients listed below:

Has the practice at any time in the last three years been the subject of a monitoring visit from the Solicitors Regulation Authority?*

Yes

No

Has the practice ever been the subject of any visit from or enquiry by the Forensic Investigation Unit of the Law Society or SRA or received notice of a proposed visit?*

Yes

No

Has the COLP/HOLP or COFA/HOFA reported any material breaches to the SRA in the last 12 months?*

Yes

No

Please provide full details

11. Claims and circumstances

Has your practice, or any prior practice, reported any circumstances, incidents or claims to, Qualifying
Insurers or the Assigned Risk Pool in the:

Insurance Year 2012-13*

Yes

No

Insurance Year 2013-14*

Yes

No

Insurance Year 2014-15*

Yes

No

Insurance Year 2015-16*

Yes

No

Current Insurance Year?*

Yes

No

Please provide claims information from Qualifying Insurers or the Assigned Risks Pool for all indemnity years since 1st October 2011 (or date of commencement of the practice if later) for your firm and any firm to which you are a successor practice.

Have any circumstances, incidents or claims reported by you or any prior practice in the past arisen as a result of the fraud or dishonesty of any Principal/Member/Director or employee of the practice?*

Yes

No

After making full enquiry of all Principals/Members/Directors and employees in your practice, are you aware of any circumstances, incidents or claims that have not been reported to your current or prior insurers (including any letters of complaint about your service or dispute as to outstanding fees)?*

Yes

No

After making full enquiry of all Principals/Members/Directors and employees in your practice, are you aware of any circumstances, incidents or claims that have been notified to your current or prior insurers but have not been accepted by insurers as a valid or effective notification?*

Yes

No

PLEASE NOTE THAT YOU HAVE AN OBLIGATION UNDER YOUR CURRENT PROFESSIONAL INDEMNITY POLICY TO NOTIFY ALL CIRCUMSTANCES AND CLAIMS AS SOON AS PRACTICABLY POSSIBLE. ALL SUCH NOTIFICATIONS OF WHICH YOU ARE AWARE THAT HAVE NOT BEEN REPORTED TO YOUR PREVIOUS INSURERS MUST BE NOTIFIED PRIOR TO THE EXPIRATION OF YOUR CURRENT POLICY

12. Previous Insurance

Are you currently, or has any solicitor referred to in this proposal form , been in the Assigned Risks Pool?*

Yes

No

Have you ever failed to pay either your premium (including run-off premium) and/or any excess?*

Yes

No

Have you ever failed to pay or defaulted on a repayment where the premium was financed?*

Yes

No

Have you or any prior practice ever been refused professional indemnity insurance?*

Yes

No

Are you or has any solicitor referred to in this proposal form been, or is currently the subject of an IVA or other arrangement?*

Yes

No

Are you or has any solicitor referred to in this proposal form been convicted of (or charged but not yet tried for) any criminal offence?*

Yes

No

Please provide details

13.Current Insurance

Premium (excluding Insurance Premium Tax)*

Limit of indemnity*

Excess*

Current Insurer

Renewal date (if not 1st October)*

14. Insurance Requirements

Limit of indemnity*

Excess*

15. Areas of Practice

Please provide the percentage of Gross Fees allocated to each Area of Practice during the last financial year and the two prior years. Please round up to the nearest whole percentage.

How many personal injury cases (from claims companies) have you undertaken in the last six years?*

Have you previously completed a claims management questionnaire?*

Yes

No

Please upload a copy of the claims management questionnaire*

Accepted file types: pdf, doc, docx, txt.

We may also require a supplementary questionnaire to be completed.

If your practice or any prior practice has undertaken personal injury work please provide the following details in respect of the last three years:

Small Claims*

Last year %

Prior year %

2 years prior %

Fast Track*

Last year %

Prior year %

2 years prior %

Multi Track*

Last year %

Prior year %

2 years prior %

What changes has the firm made or is intending to make in response to the Jackson reforms?*

Conveyancing

During any of the last six years has the practice or any prior practice undertaken any residential or commercial conveyancing work?*

Yes

No

Approximate number of transactions in the last full accounting year*

Residential

Commercial

Highest value in the last full accounting year (£)*

Residential

Commercial

Approximate number of transactions in the last full accounting year*

Residential

Commercial

Average value in the last full accounting year (£)*

Residential

Commercial

In the last six years has the practice or any prior practice undertaken any transactions that have been received from a mortgage broker, developer or other intermediary?*

Yes

No

In the last six years has the practice or any prior practice undertaken any re-mortgage transactions?*

Yes

No

In the last six years has the practice or any prior practice undertaken any Right To Buy transactions?*

Yes

No

In the last six years has the practice or any prior practice undertaken any back to back transactions?*

Yes

No

In the last six years has the practice or any prior practice acted for multiple (more than 5) purchasers in the same development or building?*

Yes

No

Please provide details*

Has your firm been involved in any setting up or advising on any Stamp Duty Land Tax (SDLT) scheme?*

Yes

No

Name of Scheme

Date of scheme*

Did you provide advice?*

Yes

No

Was the scheme execution only?*

Yes

No

Did you receive commission?*

Yes

No

Was a referral fee paid?*

Yes

No

Please provide details

Wills & Probate

Is your firm a member of the Wills & Inheritance Quality Scheme (WIQS)?*

Yes

No

16. Unbundling Legal Advice

Do you currently provide or intend to provide “unbundled legal advice” sometimes referred to as 'a la carte' legal services?*

Yes

No

Please provide details including areas of practice and details of client management process with regards to the scope of the retainer.

17. Financial Commitments

Does your firm currently have an overdraft facility or facilities?*

Yes

No

Please provide details including total limits and amounts owing at the date of this application.*

Does your firm currently have any loans or other borrowings from a bank or other third party?*

Yes

No

Please provide details including name of lenders, purpose of the loans, amount of the loans and amounts owing at the date of this application.*

Please provide a copy of your last two years’ statutory accounts.*

Drop files here or

Accepted file types: pdf, doc, docx, txt.

18. Significant Change

Do you expect there to be any significant change to or in your practice in the coming year?*

Yes

No

Please provide details.*

19. Material Information

Is there any other material information that may be relevant to this form?*

Yes

No

Please provide details.*

20. Risk Management Section

Please provide the name and status of the person responsible for risk management in your practice*

FirstLast

Status*

Please provide the name and status of the person nominated as the COLP*

FirstLast

Status*

Please provide the name and status of the person nominated as the COFA*

FirstLast

Status*

What Compliance Software does the practice utilise to carry out the duties of the COLP? (If none, please state ‘None’)*

Does the practice always obtain satisfactory written references when engaging new Principals, Members or Directors and employees, including procedures for verifying qualifications, previous experience, previous claims and/or circumstances?*

Yes

No

Is any Principal, Member, Director or Employee allowed to sign cheques on his/her signature alone?*

Yes

No

Are employees who receive cash/cheques in the course of their duties required to pay in daily?*

Yes

No

Please provide details

How often are checks carried out on all entries in the Cash Book with all paying in books, receipts, counterfoils and vouchers?*

Do you have written work instructions or checklists for the services provided?*

Yes

No

Do you have a time recording system?*

Yes

No

If you have an e-mail capability do you have an e-mail/internet user policy in place and enforced?*

Yes

No

Please outline the steps taken to review work undertaken by staff and describe how they are supervised

Are all relevant telephone conversations the subject of a note on the file?*

Yes

No

Please describe the diary system in operation (including back-up procedures) especially in light of the Mitchell case.

Do you have the required procedures in place throughout your firm for:

Client retainer letter?*

Yes

No

Vetting clients including checking for conflicts of interest?*

Yes

No

Carrying out Money Laundering checks?*

Yes

No

Registering claims and complaints?*

Yes

No

Please confirm that all fee earners and employees are kept up to date with relevant changes in legislation and other legal developments which could affect the work and services they carry out.*

Yes

No

By signing this form I/we authorise J.M. Glendinning to obtain on our behalf all relevant claims prints relating to my firm and its predecessors.

Signing this form does not bind you to accept any quotation provided by J.M. Glendinning.

THIS PROPOSAL FORM MUST BE SIGNED BY A PRINCIPAL/MEMBER/DIRECTOR OF THE FIRM

Name*

FirstLast

Date*

Signature*

Confirmation

All personal data collected by J.M. Glendinning (Insurance Brokers) Professional Risks Limited will be held in accordance with the Data Protection Act 1998. J.M. Glendinning will disclose this information to our service providers and agents for administration purposes and for underwriting and claims handling purposes. In addition J.M. Glendinning may exchange information with other organisations such as the police, regulatory authorities and professional bodies by whose rules we are bound, through various databases to help us check information provided and to prevent fraud. By returning this form, you consent to the processing of personal data, including sensitive personal data, for these purposes and to J.M. Glendinning transferring such information outside the European Economic Area where necessary.

When you provide information about another person, you are confirming that they have appointed you to act for them. Such persons will have been made aware of the purposes for the data collection and processing set out above and have consented to such processing. You will receive on their behalf any data protection notices and keep them informed about how their data will be processed and where it may be disclosed.

J.M. Glendinning may share personal data with other companies with which we establish commercial links so we and they may contact you (by mail, email, telephone or other appropriate means) in order to keep you informed about carefully selected products, services or offers that we believe will be of interest to you. If you do not wish us to do this please tick the box.

I/We warrant and declare that I/We have made full enquiry of all staff and that the particulars and statements in this proposal are true and complete and any other documentation and information provided in connection with this proposal are true and complete.I/We agree and accept that this proposal and declaration and the documentation and information which are provided (or should be provided) will be the basis of contract with Insurers. I/We also warrant and declare that I/We have informed the Insurer of all facts which are likely to influence the Insurer in the assessment or acceptance of this proposal.

I/We understand that failure to inform Insurers of all material facts, including but not limited to any circumstance which might give rise to a claim, could invalidate this insurance. I/We accept that if I/We am/are in doubt whether any fact may influence the Insurer I/We should disclose it. I/We also understand that I/We have a continuing obligation to disclose all material facts up to commencement of and throughout the period of the policy.

I/We accept that all data collected by J.M. Glendinning will be held in accordance with the Data Protection Act 1998 and that J.M. Glendinning may disclose this information only in order to obtain quotations for my/our practice’s professional indemnity insurance.*

Accept

By signing this form I/we authorise J.M. Glendinning to obtain on our behalf all relevant claims prints relating to my firm and its predecessors.

Signing this form does not bind you to accept any quotation provided by J.M. Glendinning.

THIS PROPOSAL FORM MUST BE SIGNED BY A PRINCIPAL/MEMBER/DIRECTOR OF THE FIRM

Name*

FirstLast

Date*

Signature*

Checklist

Has a Principal/Member/Director signed and dated the form and answered all questions?

Please provide a piece of your headed notepaper marked ‘specimen’.

Please provide a claims print from the Qualifying Insurer, Insurers or ARP for the last six years for your Practice and any Prior Practice.

Copies of all reports and determinations issued by any Disciplinary Tribunal or any regulatory body.

J.M.
Glendinning (Insurance Brokers) Limited is authorised and regulated by the Financial Conduct Authority. Our Firm Reference Number (FRN) is 116687. You can check this on the Financial Services Register by visiting the FCA‟s website www.fca.gov.uk or by telephoning the FCA on 0800 111 6768.